Lobbying

Viscount Thurso Excerpts

Tuesday 25th June 2013 Commons Chamber

[John Thurso (Caithness, Sutherland and Easter Ross) (LD)]

It is a great pleasure to follow the hon. Member for Leyton and Wanstead (John Cryer). Let me pick up on his last point: what we are after is transparency. I think there is agreement across the House on the need for transparency and to ensure that big business, big money and big power are accountable in politics. Today’s debate is very much about how best to try to achieve that or, at least, to find a starting point.

I was grateful that the hon. Member for Hemsworth (Jon Trickett) began, as many other Members have, by stressing the importance of good lobbying and the fact that we in Parliament cannot do our jobs without a degree of lobbying. Members have obviously mentioned their constituents and, like the hon. Member for Leyton and Wanstead, I have regular surgeries across 3,800 square miles. I travelled 207 miles last weekend to do surgeries at diametrically opposite ends of the constituency, celebrating national care homes day by visiting all the registered homes in the constituency.

At my constituency surgery in Alness, a lady came to ask me about the regulations for herbalists. I have written to the Minister on her behalf and I consider that to be absolutely the kind of thing I should be doing as a constituency MP. On another level, as a member of the Treasury Committee and a former member of the now completed Parliamentary Commission on Banking Standards, I have received a considerable amount of evidence from a wide range of bodies. It is sometimes difficult to distinguish whether they are giving me evidence or lobbying me. I am absolutely certain that in both cases my ability to have a reasoned discussion with the witnesses who have appeared before me has depended on my ability to access different points of view and different thoughts coming from different parts of the financial services industry.

It is right that we should be open to lobbying in the sense that we should hear what different people have to say. Our job is to assess what is said and come to a reasonable decision in our deliberations, whether in Select Committee or when considering legislation. As sometimes happens, the tendency to dismiss lobbyists and lobbying as a wrong process is to misunderstand how Parliament should work.

We are really talking about access to power for the purposes of diverting what power might otherwise do. Part of the problem that we will have with the legislation is working out where power is. With Ministers, it is pretty straightforward. If I go and lobby the Secretary of State for Energy about what is happening at Dounreay, it is pretty clear why I have gone to see him. If Babcock does the same, it is also pretty clear what is happening. The problem is when people have access to those in power in a way that is not revealed. An example was given this morning when Sir Mervyn King made his last appearance before the Treasury Select Committee. The Chairman asked him a question about lessons learned. He said that one of the most important things was that the Prudential Regulation Authority, the body that will control the banks, had the support of Ministers and Parliament such that the kind of lobbying that took place in the past—when bankers went to their supervisors to ask for a lighter judgment on supervision and the telephone calls he mentioned to No. 11 and sometimes No. 10—could not happen. That is what we really have to seek to expose.

[Thomas Docherty]

The hon. Gentleman cited Babcock. That is a prime example that shows why the Bill must cover everyone. Babcock is a multinational company that has a rail division, a nuclear division and a defence division. Simply to say that Babcock has been to see a Minister provides no transparency. So it has to be all lobbyists.

[John Thurso]

I am going to disagree with the hon. Gentleman in a moment for a simple reason. In relation to visiting a Minister, the key is not in the Bill or in any legislation that we might pass. The key is the ministerial code; the key is the fact that the visits by that company or any other company will be published. I agree with hon. Members who said that there should be more information; wider detail should be published about meetings. At the moment, the quarterly register often just says “general discussion”, and that is not good enough. I urge those who are responsible for the ministerial code to look at toughening it up in some way and perhaps publishing the code a little more often than quarterly. Such things could be done tomorrow; they do not require legislation.

The second point is the difference between in-house and third-party lobbyists. I think we are all going in the same direction, but it seems to me that one has to start somewhere. To me, the third-party lobbyists are a good place to start. As the hon. Member for Nottingham North (Mr Allen) said, it is better to make a start than to go for perfection. If Oxfam turns up to see the Secretary of State for International Development, it is pretty obvious what is going to be talked about. It is far more important that when Messrs Grabit and Nickit turn up to lobby on behalf of an unknown firm, we have a registration of who they are and what they do. That is far more important than making every single company that has someone in house working for them register that fact.

In my party’s 2001 conference motion on regulation of professional parliamentary lobbying, which I am sure was on everyone’s lips at the time, we said:

“No parliamentarian … at Westminster should be a director of, an employee of, receive any reward from or hold a stake in any of the duly registered professional parliamentary lobbying companies. … A statutory register of such professional lobbying firms should be set up and supervised by the Commissioner on Parliamentary Standards.”

In 2006, my colleague David Howarth, the then Member for Cambridge, sought to insert an amendment into the Companies Bill to cap the amount spent on lobbying. The then Government declined to accept it. So my party has a long history of seeking to do something about lobbying. The important thing now is to be clear who is doing the lobbying. That is why registering the professional lobbyists is so important.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Is not one of the problems of the recent scandal not so much the lobbying but the payment of politicians, who may be part of the operation of that lobbying. It is not the lobbying per se; it is the payment, the money, the feeling of corruption.

[John Thurso]

I am delighted to welcome the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) to his place. That is something I touched on at the beginning of my remarks. He makes an important point. In the recent scandals involving a Member of this House and three Members of the other place, nothing in this Bill or any other Bill on lobbying would have changed anything. What they did is already against the rules. My advice to any Member of this House is that the day someone comes to them and says, “Would you like £24,000?”, they are being offered a sting. None of us is worth that amount.

I was once almost the victim of a sting. A gentleman came to see me and asked me if I would chair his company. I said, “Yes, but first I need to do due diligence and see a set of accounts. Secondly, you have to look at my CV and see whether I have the skills you want. Thirdly, if it is ever anything to do with Parliament, I can have nothing whatever to do with it.” Needless to say, I never heard from him again.

[Grahame M. Morris]

Will the hon. Gentleman give way?

[John Thurso]

I have taken two interventions so I would like to get to the end of my speech.

I hope that the Bill will deal with third-party, non-party controlled expenditure and measures to regulate non-party actors who seek to influence elections. This touches on the whole question of the trade unions. The best way is simply for the trade unions to be treated in the same way as any other body according to the third-party, non-party controlled expenditure rules. If we had those rules, requirements made of trade unions would be made by way of alterations to the third-party controlled expenditure rules rather than to any trade union rules, which is absolutely the right way forward.

It is right that we look at lobbying and make sure that we have a register. It is too late for cross-party talks. We tried that with the House of Lords and look where it got us. I am scarred by that. We should just get on with it and make sure that it happens.

My inclination is towards pre-legislative scrutiny. I doubt that it is going to happen, but the Chair of the Political and Constitutional Reform Committee might take a leaf out of the book of the hon. Member for Chichester (Mr Tyrie). He went ahead with it himself on the Treasury Committee and I am sure that his Committee will just go ahead and do it. It will probably be an invaluable report. I look forward to supporting the Government in the Lobby and making sure that matters come to fruition and we see a Bill as soon as possible.